Which institution is Israel’s central bank and issuer of the Israeli new shekel?

The Bank of Israel is Israel’s central bank and the institution responsible for issuing the Israeli new shekel.

Its main duties include setting monetary policy, managing foreign-exchange reserves, supervising banks, operating payment systems, and supporting financial stability. The bank also advises the government on economic matters and publishes statistical and financial information.

The Knesset established the Bank of Israel in 1954, and it began operations in December of that year. Its headquarters are in Jerusalem, while its banknote and coin functions are part of the country’s broader monetary framework.

The Israeli new shekel replaced the old shekel in 1985 as part of an economic stabilization program. The Bank of Israel is distinct from Israel Discount Bank and Bank Hapoalim, both of which are commercial banks rather than the national monetary authority.